The present invention relates generally to methods and systems for confirming the identity of a party seeking to be involved in a financial transaction with another party. Specifically, the invention provides identification verification methods and systems employing a money-transfer system having a plurality of transaction locations.
In a face-to-face transaction, positive identification of one party is many times established through the physical presentation of some sort of identification device to the other party, e.g. a driver's license, passport, social security card, biometric feature, etc. In some cases, this identification device is adequate to establish the identity of the party, particularly if the identification device incorporates a feature, e.g. a picture, signature, etc, that can be easily compared in person with the physical traits of the party presenting the identification device. However, in other cases, the identification device may be counterfeit or forged, and the party accepting the identification material may not have the tools, technology and/or training to properly detect that the identification device is not authentic. Furthermore, in an on-line transaction, one party is not able to physically present the identification device to the other party. Therefore, in some cases, parties to a transaction, e.g. non-financial institutions, merchants, government agencies, banks, etc. often rely upon faxed copies or other electronically-transmitted facsimiles of the identification device to verify identity, sometimes coupled with inquiries to major credit reporting agencies. Again, this identification method is vulnerable to identity theft, forgery and/or counterfeiting, and has the potential to be used by an identity thief to perform seemingly valid transactions for fraudulent purposes.
Many people use the services of money-transfer service providers to send funds to other people or to purchase negotiable instruments such as money orders and travelers checks. Electronic communication and financial services networks have now developed to a point that allows such transactions to have a nearly global reach, and money-transfer service providers typically have extensive money-transfer systems with locations in convenient geographies around the world. Unfortunately, some people attempt to use money-transfer service providers to transfer money for illegal or unethical purposes. As a result, various laws and regulations attempt to thwart this type of activity by requiring positive identification of individuals involved in certain money-transfer transactions; such as, for example, transactions above an established value threshold. In order to comply with these laws and regulations, money-transfer service providers and their associates are typically equipped with the tools, technology and training required to properly validate various identification devices, either by comparing the identification device with the physical traits of a consumer or business representative present at a money-transfer location, or by employing various systems and methods for identity verification that are associated with the money-transfer system. For example, systems and methods for confirming the validity of identification devices and identification information in money-transfer transactions are described in co-pending U.S. patent application Ser. No. 09/317,785, filed May 24, 1999; Ser. No. 10/424,558, filed Apr. 25, 2003; Ser. No. 10/424,562, filed Apr. 25, 2003; Ser. No. 10/832,809, filed Apr. 26, 2004; and Ser. No. 11/623,956, filed Jan. 17, 2007; all of which are incorporated herein by reference in their entirety for all purposes.